Will the ACA Increase Customer Base for Medical Device Companies?

A MassMEDIC commissioned survey, one-third of device firms queried expect the Affordable Care Act to increase their customer base. In addition, one-third of the companies feel the new business will be enough to cover the medical device tax.

The medical device industry has been very vocal about its distaste for the 2.3 percent excise tax. They have actively lobbied against the tax and have claimed that it will threaten U.S. jobs and have a negative impact on R&D efforts. They have pushed back on the Obama administration and its supporters claim that the tax will be covered by the additional revenue created by the ACA.

The survey was conducted by market research firm Chadwick Martin Bailey (CBM). It relied on results from 123 MassMedic members and industry colleagues. The respondents consist of:

66% medical device equipment manufacturers

28% service supplier or consulting firms responding on behalf of their largest client

6% Work with organizations associated with medical device companies

84% had facilities within Massachusetts

48% had operations overseas

Morgan Stanley issued a separate report that predicts only a modest increase in device utilization. It also indicates that it will put additional volume and cost pressure on the device industry.

There has been much written about the pros and cons of the ACA. Do you feel it will provide more volume for the medical device industry, which will allow it to cover the 2.3% tax? Please share your thoughts below.